Correlation Between Clearbridge Energy and New York
Can any of the company-specific risk be diversified away by investing in both Clearbridge Energy and New York at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Clearbridge Energy and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge Energy Mlp and New York Bond, you can compare the effects of market volatilities on Clearbridge Energy and New York and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Clearbridge Energy with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge Energy and New York.
Diversification Opportunities for Clearbridge Energy and New York
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Clearbridge and New is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge Energy Mlp and New York Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Bond and Clearbridge Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Clearbridge Energy Mlp are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Bond has no effect on the direction of Clearbridge Energy i.e., Clearbridge Energy and New York go up and down completely randomly.
Pair Corralation between Clearbridge Energy and New York
Assuming the 90 days horizon Clearbridge Energy Mlp is expected to generate 3.36 times more return on investment than New York. However, Clearbridge Energy is 3.36 times more volatile than New York Bond. It trades about 0.14 of its potential returns per unit of risk. New York Bond is currently generating about 0.15 per unit of risk. If you would invest 3,632 in Clearbridge Energy Mlp on September 4, 2024 and sell it today you would earn a total of 1,950 from holding Clearbridge Energy Mlp or generate 53.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge Energy Mlp vs. New York Bond
Performance |
| Timeline |
| Clearbridge Energy Mlp |
| New York Bond |
Clearbridge Energy and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge Energy and New York
The main advantage of trading using opposite Clearbridge Energy and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge Energy position performs unexpectedly, New York can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in New York will offset losses from the drop in New York's long position.| Clearbridge Energy vs. Chase Growth Fund | Clearbridge Energy vs. Nationwide Growth Fund | Clearbridge Energy vs. Rational Defensive Growth | Clearbridge Energy vs. Pace Large Growth |
| New York vs. Fidelity Advisor Energy | New York vs. Oil Gas Ultrasector | New York vs. Clearbridge Energy Mlp | New York vs. Icon Natural Resources |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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